Automatic Data ProcessingMEX:ADAP 91 Return-on-Tangible-Asset is 7.82% as of Mar. 2026, which is 24% above its 10-year median of 6.29. GuruFocus rates MEX:ADAP with a GF Score™ of 91/100 and a GF Value™ of MXN4,900.03 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,877 Software companies, Automatic Data Processing ranks better than 69.34% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Automatic Data Processing's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN98,083 Mil. Automatic Data Processing's average total tangible assets for the quarter that ended in Mar. 2026 was MXN1,254,696 Mil. Therefore, Automatic Data Processing's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 7.82%.
The historical rank and industry rank for Automatic Data Processing's Return-on-Tangible-Asset or its related term are showing as below:
MEX:ADAP'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.13 Med: 6.29 Max: 8.23
Current: 7.52
During the past 13 years, Automatic Data Processing's highest Return-on-Tangible-Asset was 8.23%. The lowest was 4.13%. And the median was 6.29%.
MEX:ADAP's Return-on-Tangible-Asset is ranked better than 69.34% of 2877
companies
in the Software industry
Industry Median: 2.04
vs MEX:ADAP: 7.52
Automatic Data Processing (MEX:ADAP) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Automatic Data Processing Return-on-Tangible-Asset Related Terms
Automatic Data Processing Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Automatic Data Processing's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Automatic Data Processing Return-on-Tangible-Asset Chart
MEX:ADAP vs SNOW, DDOG, ADBE: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Automatic Data Processing's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Automatic Data Processing Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 7.82% mean?
Automatic Data Processing (MEX:ADAP) has a Return-on-Tangible-Asset of 7.82% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Automatic Data Processing and its competitors. This is 24% above median its historical median of 6.29. Over the past decade, Automatic Data Processing's Return-on-Tangible-Asset has ranged from 4.13 to 8.23. According to the industry distribution chart, Automatic Data Processing ranks #882 out of 2877 companies in the Software industry, placing it in the top 30.7%.
Is Automatic Data Processing's Return-on-Tangible-Asset too high?
Automatic Data Processing's current Return-on-Tangible-Asset of 7.82% is 24% above median its 10-year median of 6.29. Over the past 10 years, this metric has ranged from a low of 4.13 to a high of 8.23. The Software industry median Return-on-Tangible-Asset is 2.04. Automatic Data Processing's value of 7.82% is 283.3% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #882 out of 2877 companies in the Software industry, which is above the industry midpoint. Overall, Automatic Data Processing has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Return-on-Tangible-Asset compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #882 out of 2877 companies for Return-on-Tangible-Asset. This puts Automatic Data Processing in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.04. Automatic Data Processing's value of 7.82% is 283.3% above this benchmark. Historically, Automatic Data Processing's own Return-on-Tangible-Asset has ranged from 4.13 to 8.23 over the past decade. While the company's 10-year median is 6.29 vs. the industry median of 2.04, Automatic Data Processing has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,877 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Return-on-Tangible-Asset of 7.82% is 283.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Return-on-Tangible-Asset is 7.82%, which is 24% above median its own 10-year median of 6.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Automatic Data Processing stock overvalued right now?
Based on GuruFocus' analysis, Automatic Data Processing (MEX:ADAP) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN4,900.03, compared to a current price of MXN3,880.95 — trading 20.8% below its estimated fair value. The current Return-on-Tangible-Asset is 7.82%, which is 24% above median its 10-year median of 6.29 and 283.3% above the Software industry median of 2.04. Automatic Data Processing's overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Automatic Data Processing (MEX:ADAP), the current Return-on-Tangible-Asset is 7.82% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Automatic Data Processing (MEX:ADAP) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of MXN3,880.95 is trading 20.8% below its estimated GF Value™ of MXN4,900.03.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for MEX:ADAP:
Return-on-Tangible-Asset: 7.82% (24% above median its 10-year median of 6.29)
GF Value™: MXN4,900.03 vs. price of MXN3,880.95 (20.8% below fair value)
Industry Position: 283.3% above the Software median (#882 of 2877)
No single metric tells the full story. See the MEX:ADAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Automatic Data Processing, or ADP, is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including PEO offerings, enabling clients to reduce HR overhead. Its broad suite serves customers of all sizes across diverse sectors, and the firm holds large market shares in its core markets. As of fiscal 2025, ADP counts over 1.1 million clients and manages payroll for more than 42 million workers across 140 countries.
91GF Score
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